NSO Calculator
NSO Calculator
Exercise spread as ordinary income, full withholding breakdown, and net cash from a cashless exercise-and-sell.
Exercise spread as ordinary income, full withholding breakdown, and net cash from a cashless exercise-and-sell.
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Professional Financial Tools
8/25/2026
The fixed price your option lets you pay per share.
Current 409A valuation (private) or market price (public) per share.
Bonuses, RSU vests, or prior option exercises this year — only matters once your total passes $1M.
Selling all shares the same day means no out-of-pocket cash — the sale proceeds cover the strike price and taxes.
1,000 shares × ($30 FMV − $10 strike). Taxed as W-2 compensation the moment you exercise, regardless of whether you sell.
1,000 shares × $10 strike price — this is separate from the tax owed on the spread.
Flat 22% optional rate on the spread — often lower than your actual marginal rate on large exercises, which can leave a gap due at filing.
$34,500 of the $184,500 wage base remained before this exercise.
No wage cap.
29.6% effective rate on the spread. This is withholding, not necessarily your final tax bill.
Sale proceeds at the exercise-date FMV, minus the strike price you paid and all withholding. A true cashless exercise nets you this amount without any out-of-pocket cash.
Free financial calculators, verified against primary sources like the IRS, CFPB and Federal Reserve. No sign-up, and every calculation runs entirely in your browser — nothing you type is ever sent to us.
Picked based on what this calculator does
Net shares value after federal, FICA, and state withholding at vest — plus a capital gain preview if you hold.
Open calculatorShares purchased at your plan discount, split into ordinary income and capital gain by qualifying vs. disqualifying disposition.
Open calculatorSee your 2026 marginal and effective tax rates with bracket breakdown.
Open calculatorEstimate your annual federal income tax liability.
Open calculatorSE tax (Social Security + Medicare) plus an optional combined federal income tax estimate for 1099 and freelance income.
Open calculatorNet income, DTI, and savings rate.
Open calculatorThe NSO Calculator estimates your tax liability using current US federal tax brackets and rules. It provides instant, accurate results and helps you model scenarios so you can make better decisions with your money.
Taxes are the single largest expense for most US households — more than housing, food, or transportation. Understanding your effective tax rate (the percentage of your total income that actually goes to taxes) and marginal rate (the rate on your next dollar earned) is essential for smart planning. This calculator uses brackets published by the Internal Revenue Service.
US federal income tax is progressive — your income is split across brackets and each slice is taxed at its bracket's rate.
For a single filer in tax year 2025:
Your effective rate = total tax ÷ total income. This is almost always much lower than your marginal (top-bracket) rate.
FICA taxes (Social Security + Medicare) add another 7.65% up to the wage base, plus 0.9% Medicare surtax for high earners.
This is an estimate. Your actual return may differ due to itemized deductions, state taxes, AMT, or credits.
A deduction reduces your taxable income — worth your marginal rate. A credit reduces your tax bill dollar-for-dollar. A $1,000 credit is worth exactly $1,000; a $1,000 deduction is worth $220 if you're in the 22% bracket.
For 2025, the standard deduction is $15,000 single, $30,000 married filing jointly. If your total itemized deductions (mortgage interest, state/local taxes capped at $10,000, charity, medical >7.5% of AGI) exceed that, itemize. Otherwise, take standard.
Only the portion of the raise that crosses into a new bracket is taxed at the higher rate. You can never lose money by earning more — a common misconception. You might lose access to certain income-based credits, though.
No. This is an estimate for planning. Actual tax returns involve dozens of edge cases, state taxes, AMT, multi-state residency, and credits this tool can't fully model. For filing, use TurboTax, FreeTaxUSA, or a CPA.